Fiat Chrysler has announced that it will spin off Ferrari, with 10 per cent of the Italian luxury sports car maker to be floated on the open sharemarket.

The remainder of Ferrari will be distributed amongst shareholders in Fiat Chrysler Automobiles (FCA). Money raised by this move will help fund the company's 48 billion euro ($69 billion) five-year business plan announced earlier this year.

FCA CEO Sergio Marchionne said in a statement: "As we move forward to secure the 2014-2018 Business Plan and work toward maximizing the value of our businesses to our shareholders, it is proper that we pursue separate paths for FCA and Ferrari".

John Elkann, FCA's chairman, noted that "the separation of Ferrari will preserve the cherished Italian heritage and unique position of the Ferrari business and allow FCA shareholders to continue to benefit from the substantial value inherent in this business".

According to Fiat Chrysler, the Ferrari spinoff will be completed some time in 2015, with shares in Ferrari listed both in the US, as well as a yet-to-determined European bourse.

At the time of writing the market has reacted favourably to Fiat Chrysler's move, with its shares jumping up 12 per cent from US$9.72 ($10.93) to about US$11 ($12.37).

It's been a busy year for all involved with the Italian-American automaker. In January, Fiat finally completed the takeover of Chrysler by purchasing the remaining 41 per cent of the company for US$4.35 billion.

The newly merged entity announced in May that its global headquarters would be located in London. Also in May, the company took the unusual step of outlining its product plan until 2018.

Earlier this month, after a series of disputes with Marchionne, Ferrari boss Luca di Montezemolo stepped down from the brand that he's led since 1991. Around the time of Di Montezemolo's departure, FCA listed itself on the New York stock exchange.